Hedge funds were down 0.44% in January, outperforming underlying markets as the MSCI World Index declined 3.74% during the month with global markets off to a bumpy start in 2014.
Key takeaways for January 2014:
- Hedge funds surpassed the MSCI World Index by over 3% — the largest outperformance in 20 months; almost 90% of fund managers outperformed underlying markets
- Developed markets investing hedge funds fared better than those focused on emerging economies, with North American, European and Japanese hedge funds delivering positive returns amid difficult market conditions
- Japan-focused long/short equities managers gained 0.42% in January and outperformed the Nikkei 225 Index by almost 9% during the month
- Greater China hedge funds ended their six month winning streak, with net asset allocations to fund managers at US$1.6 billion for 2013
- Latin American focused managers outperformed the MSCI EM Latin America Index by 5% during the month
- Distressed debt investing hedge funds delivered their seventh consecutive month of positive returns — up 0.69% in January and 15% in the last 12 months